ProShares to launch seven funds that adjust exposure between related index, three-month Treasuries

By Toni Weeks

San Diego, Dec. 16 - ProShares Trust is planning seven new funds, each one seeking investment results corresponding to an index and aiming to maintain a target volatility of 15% though leveraged exposure to the index and three-month U.S. Treasury bills.

Announced in an N-1A filing with the Securities and Exchange Commission, the funds include the ProShares Nasdaq-100 - 15% Volatility Target, the ProShares Dow 30 - 15% Volatility Target, the ProShares Russell 2000 - 15% Volatility Target, the ProShares Russell 1000 - 15% Volatility Target, the ProShares MSCI EAFE - 15% Volatility Target, the ProShares MSCI Emerging Markets - 15% Volatility Target and the ProShares S&P MidCap400 - 15% Volatility Target.

The ProShares Nasdaq 100 - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the Nasdaq 100 - 15% Volatility Index, a modified market capitalization-weighted index that includes 100 of the largest non-financial domestic and international issues listed on Nasdaq. The dynamic exposure targets an overall volatility for the index of 15% through leveraged exposure, adjusting exposure between the index and three-month U.S. Treasury bills. The fund will invest at least 80% of its total assets in the equity and/or fixed-income securities comprising the index. Hratch Najarian will be the portfolio manager.

The ProShares Dow 30 - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the Dow 30 - 15% Volatility Index, a price-weighted index maintained by the editors of the Wall Street Journal. The index seeks to maintain a target volatility of 15% through leveraged exposure or de-leveraged exposure to the Dow Jones industrial average and three-month U.S. Treasury bills. Hratch Najarian will be the portfolio manager.

The ProShares Russell 2000 - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the Russell 2000 - 15% Volatility Index, a measure of small-cap U.S. stock market performance. The index adjusts exposure between the Russell 2000 and three-month Treasury. Hratch Najarian will be the portfolio manager.

The ProShares Russell 1000 - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the Russell 1000 - 15% Volatility Index, which provides exposure to large-cap U.S. equity performance. The index adjusts exposure between the index and three-month U.S. Treasury bills. Hratch Najarian will be the portfolio manager.

The ProShares MSCI EAFE - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the MSCI EAFE - 15% Volatility Index. The stocks of the index include 85% of free-float-adjusted market capitalization in each industry group in developed market countries, excluding the United States and Canada. The index adjusts exposure between the index and three-month U.S. Treasury bills. Alexander Ilyasov will be the portfolio manager.

The ProShares MSCI Emerging Markets - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the MSCI Emerging Markets - 15% Volatility Index, a free-float-adjusted market capitalization index designed to measure equity market performance in the global emerging markets. The index adjusts exposure between the index and three-month Treasuries. The fund will be managed by Alexander Ilyasov.

The ProShares S&P MidCap400 - 15% Volatility Target seeks investment results, before fees and expenses, that correspond to the performance of the S&P MidCap400 Index, a float-adjusted market capitalization-weighted index of 400 U.S. operating companies and real estate investment trusts. The index adjusts exposure between the index and three-month U.S. Treasuries. Hratch Najarian will be the portfolio manager.

Annual fund operating expenses for the funds have not yet been published.

The fund's investment adviser will be Bethesda, Md.-based ProShare Advisors.

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